Trump's potentially impactful departure paves the way for DAX's potential resurgence
Title: Has the DAX Stomached Trump's Tariffs? Plus, Insights on Daimler Truck and Redcare Pharmacy
Let's dive into the turmoil on Wall Street following the recent Trump tariff announcements and see how the DAX is holding up, with a special focus on Daimler Truck and Redcare Pharmacy.
Friday was a rough day for the German benchmark index, DAX. Despite an initial attempt to recover from the tariff shock, the index plummeted 0.77 percent to about 21,549 points in the morning. This setback almost wiped out half of the impressive record rally since mid-December. If the market doesn't stabilize around the 21,500 point level, the 100-day moving average at just over 21,200 points could potentially serve as a support base. Commerzbank warns that Trump's aggressive tariff plans could jeopardize optimistic profit forecasts for DAX companies [1].
The MDAX of mid-sized companies also took a hit, losing 0.44 percent to 26,757 points on Friday. The Eurozone benchmark EuroStoxx 50 dropped around 1 percent, reflecting a broader global concern [1]. In the US, stock exchanges documented a sell-off on Thursday following the global, reciprocal tariffs imposed by President Donald Trump. The Dow Jones Industrial Average plummeted to its lowest level since September 2024, with the tech-heavy Nasdaq indices taking an even harder hit [1].
coping with US tariffs: Daimler Truck's stance
Despite the uncertainty surrounding international trade policies, RBC remains bullish on Daimler Truck, maintaining its "Outperform" rating for the company. European investment goods companies are expected to have limited direct impacts from the new US tariffs, with a low single-digit percentage burden on earnings (EPS). However, the risks for the anticipated sector recovery in the second half of the year have increased [2].
Daimler Truck (WKN: DTR0CK)
Redcare Pharmacy solidifying dominance
Meanwhile, Jefferies has maintained its "Buy" rating for Redcare Pharmacy after preliminary quarterly results. The online pharmacy has had a strong start to the year and has further consolidated its dominance on the German e-prescription market. Despite growth slowing compared to the final quarter of 2024, the rest of Redcare Pharmacy's business shows strong momentum [3]. The focus will now shift to the full-year results on May 6, with management already providing positive margin indications for the rest of the year.
Redcare Pharmacy (WKN: A2AR94) Contains material from dpa-AFX
While international trade tensions may indirectly impact Daimler Truck, it is unclear whether Redcare Pharmacy will be affected by the Trump tariffs, as there is no specific mention of the company in relation to these trade policies.
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[1] -- Source: dpa-AFX, The Local[2] -- Source: CNBC[3] -- Source: Financial Times[4] -- Source: MarketWatch
The uncertainties in international trade policies might indirectly pose risks for Daimler Truck's anticipated sector recovery in the second half of the year, as suggested by RBC's assessment. On the other hand, it seemsRedcare Pharmacy may not be directly affected by Trump's tariffs, as there is no specific mention of the company in relation to these trade policies.
